Frequently Asked Questions About Auto Finance
Vehicle refinancing means paying off an old car loan with a new loan with better rates. The loan term is the total time required to pay the loan. Principal is the amount you still owe on your auto loan. As you make payments, your principal decreases. Read more…
To pay off a car loan faster, ask your lender if your payments can go towards the principal rather than the interest. You could also try to make extra payments each month. If you refinance your auto loan, you might pay the same each month, but end up paying the loan off faster. Read more…
There is no car age limit to car loan refinancing. But if you owe more on your current car loan than the market value of your car, then it might be difficult to refinance. Auto loan refinance networks can quickly determine if you can refinance for less. It doesn’t hurt to ask. Read more…
Refinancing an auto loan can lower your monthly car payment significantly. This is good news for those who have student loan debt. Personal loans are another option if the rates are low. When you refinance, shop around and compare rates. Refinance networks help speed up the process. Read more…
Regular car maintenance reduces monthly car costs since you’ll spend less on repairs. Also, smart driving habits, such as gradual acceleration and braking, conserve fuel and auto parts. If you refinance your auto loan, you can cut down on monthly car payments as well. Read more…
Used car prices are falling thanks to the “Cash for Clunkers” program and a rebounding economy. The increased market activity combined with easier access to credit, might lead to a decrease in car loan refinancing rates. In any case, it never hurts to ask if you can get a better rate. Read more…
Many times you can spot a car refinancing scammer just by looking at their website. If it looks non-professional, steer clear. Also look for the Better Business Bureau badge, and confirm the company’s status on the BBB site. Upfront payments are a common scam artist tactic to look out for. Read more…
When financing or refinancing a car, beware of dealer scams. Some dishonest lenders will try to fool you with low monthly payments but high interest rates. They might even lie and tell you that your credit score does not qualify for a lower APR. Take your time and shop around for the best rates. Read more…
If you are self employed and use your car for work, you might be able to deduct the interest on a refinanced car loan. Business that use vehicles can also declare a tax deduction on auto loan interest. Make sure you keep well-organized records when filing for these deductions. Read more…
In general, refinancing your car loan has little to no affect on your credit rating. Credit ratings are mostly affected by having credit and making on-time payments. Refinancing might even improve your credit score if it makes it easier for you to make your monthly car payment. Read more…
Auto loan refinancing can lower your car insurance rates if your lender accepts a lower value for your car. This makes sense especially if you’ve owned your vehicle for over 1-2 years. Some insurers will allow you to drop some coverage if you’ve paid off a certain amount on your car loan. Read more…
Auto refinancing fees can include early termination fees, transaction fees, state registration, and late payment fees. Auto insurance rates might also be affected by refinancing. If your refinanced auto loan rate is low enough, it should offset the total amount of these fees. Read more…
The first tradeoff with vehicle refinancing is a better interest rate. If you’ve been making payments on your current loan, then your credit score should be better. This could get you a lower rate as well. Refinancing also can allow you to shorten the overall time to pay your loan. Read more…
Interest on a refinanced auto loan is what you pay to borrow. Interest is partly based on the loan amount. The loan term is the total time required to pay back the loan. The principal is the total amount you owe on the loan, not including interest. The APR is the annual percentage rate. Read more…
Just like any other product or service, car refinance rates are affected by supply and demand. Also, if the inflation rate goes up, so do refinance rates. Additionally, the Federal Reserve interest rate has a direct impact on used car refinance rates. Read more…
When choosing an auto refinance company determine who will be doing the lending. Also ask about interest rates and any fees. Decide if you prefer a lower monthly payment or a shorter loan term. Finally, make sure you know how your car insurance will be affected by refinancing. Read more…
You can refinance your car loan at any time, but the biggest savings are typically found near the middle of your loan term. Later, fees might cancel out any savings. In every case, if you get a significantly lower interest rate, you could save money by auto loan refinancing. Read more…
To refinance a loan with bad credit, first get your credit score. Check to make sure everything on the report is accurate. Next, go shopping for a refinanced auto loan. Refinance networks are the fastest way to consult with multiple lenders to see if you qualify. Read more…
You refinance a car when you pay off your current car loan with a new loan. The main advantage of refinancing is a lower interest rate. This can reduce your monthly car payment, shorten your total loan term, or in some cases both. You can ask about refinancing at any time. Read more…
To get out of a bad car loan, first assess the value of your used car. Next, determine if how much you still owe is more than the car’s value. Consider selling your car to pay off all or part of your debt. You can also refinance the loan to get a better interest rate and lower monthly payments. Read more…
Auto loans are compared primarily by their interest rates. The type of lender also makes a difference. For example, some lenders might be more willing to extend a loan to people with damaged credit. Lender networks help you make fast auto loan comparisons. Read more…
When choosing an auto refinance company, get the details about your current loan. Compare rates among multiple lenders. Also, verify that your refinancing provider is accredited with the Better Business Bureau (BBB). The BBB website provides a company’s rating and history. Read more…
Your car’s type and age affect the value of the car. This value affects the interest rate on any refinanced auto loan. Car mileage, accessories, credit history, and even the state you live in are other factors that can affect car loan refinancing rates. Read more…
The main reason people refinance their auto loan is to save money. Refinancing means that you exchange your current car loan for a new loan with lower interest. This can result in lower monthly payments, shorter loan repayment term, or maybe even both. Read more…
A recent experiment showed that ridesharing was less than owning a car, but some of the experiment data (such as changes in user behavior which reduced car use) could be challenged. Other financial experts claim car ownership is still generally still less expensive than ridesharing. Read more…
In general, manual transmission cars get better gas mileage than automatic vehicles. This is mostly because manual transmissions have a much simpler mechanism that consumes less gas. Automatic transmissions are heavier and burn more fuel to carry the extra weight. Read more…
Millennials will impact the car industry mostly because they drive less. This means more ridesharing and less demand for cars and car parts. Financing rates might also drop due to fewer car owners. Additionally, the average amount of use per car could rise significantly. Read more…
Questions? Interested in refinancing your car or truck? Contact CARCHEX today.
